Why did unemployment become a major problem in Kolkata after the 1950s?

Unemployment in Kolkata became a persistent and growing challenge after the 1950s due to a combination of economic decline and significant demographic pressures.

Following the partition of Bengal in 1947, the city suffered a major economic setback as it lost access to a significant portion of its former hinterland, which disrupted trade and industrial stability. This was compounded by a general decline in industrial productivity and a lack of industrial diversification, as the city’s manufacturing sector—historically centered on jute and engineering—struggled to adapt. Economic stagnation in the mid-1960s further fueled a flight of capital from the city.12

Simultaneously, the city faced extreme population growth. The partition of 1947 and later conflicts in Bangladesh triggered massive influxes of refugees, while a continuous stream of migrants from neighboring states arrived in search of work. This rapid population increase, coupled with the city's industrial decline, created a severe imbalance between the available labor force and the capacity of the local economy to provide employment.314